Brazil: ICMS changes in São Paulo

Brazil: ICMS changes in São Paulo

The state of São Paulo is the first to revise its legislation to adapt to changes made by an April 2015 federal amendment for purposes of the ICMS regime.


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The ICMS—Imposto sobre Circulação de Mercadorias e Serviços—is a state-level sales tax imposed on the physical movement of merchandise. The ICMS is also levied on certain inter-state and inter-municipal services.

Law 15,856/15 (2 July 2015) provides new rules and makes changes to the 1989 law establishing the ICMS regime in the state of São Paulo, and has an effective date of 1 January 2016. Among the changes, the new law:

  • Replaces the term “taxpayer” (contribuinte) with “person” (pessoa) and effectively expands the scope of the ICMS rules
  • Provides that the rate of ICMS depends on the Brazilian location of the person receiving the goods or services (various rates may apply based on the location)
  • Concerns the rules for establishing the occurrence of the taxable event

Read a July 2015 report (Portuguese) prepared by the KPMG member firm in Brazil: ICMS-SP - Novas regras

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